Intel cuts Mobileye IPO valuation to under $20b – report

Intel Corp. is set to cut the IPO valuation of its Israeli self-driving cars and advanced driver-assistance systems (ADAS) unit Mobileye to less than $20 billion, “The Wall Street Journal” reports, according to people familiar with the matter. By selling fewer shares at a lower price, Intel and its advisors are hoping that after trading begins, the share price will rise, some of the people told “The Wall Street Journal.”

“The Wall Street Journal” also reported that Intel was beginning Mobileye’s roadshow for investors today with the aim of holding the IPO next week on October 26.

Mobileye was founded in 1999 by Prof. Amnon Shashua, who serves as its CEO, and Ziv Aviram. In 2014, Mobileye was floated on the New York Stock Exchange at a valuation of $5.3 billion, and in March 2017, when its market cap stood at $10.5 billion, it was acquired by Intel for $15 billion. For its second round on Wall Street, Mobileye is being accompanied by no fewer than 24 investment banks, headed by Goldman Sachs and Morgan Stanley.

Intel had initially been aiming for a valuation of $50 billion for Mobileye but in the summer Shashua told employees that the IPO had been postponed due to market conditions and several months ago “Bloomberg” reported that the Israeli unit’s valuation had been cut to $30 billion.

Mobileye’s prospectus filed last month shows that in the first half year, ending on July 2, Mobileye’s revenue grew by 21.3% in comparison with the first half of 2021, reaching $854 million. Mobileye posted a net loss of $67 million for the first half of 2022, which compares with a net profit of $4 million in the corresponding period of 2021. Excluding write downs of intangible assets and stock-based compensation to employees, Mobileye posted an adjusted net profit of $276 million in the first half of 2022, up 2% from the corresponding period.

Mobileye’s revenue in 2021 totaled nearly $1.4 billion, 43.3% more than in 2021, and it posted a net loss for the year of $75 million, after a loss of $196 million in 2020.

Published by Globes, Israel business news – en.globes.co.il – on October 18, 2022.

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